Labor's contentious bill to cap the number of international students studying in Australia has hit a major roadblock, with the Coalition and Greens uniting in opposition.
starting next year was necessary to address housing shortages.
In a statement, Greens senator Mehreen Faruqi criticised the policy, calling it "flawed" and said it should "never see the light of day".
"Labor’s reckless and chaotic international student caps are finally dead in the water as they should be. This was the very definition of how not to make policy," she said in her statement.
"From day one, we have been vocal in our opposition to these student caps which was just dog whistling that shamefully scapegoated international students for the housing crisis they did not cause.
"Literally everyone except Labor was opposed to international student caps because they would decimate the sector, harm international students and our reputation and result in massive job and economic losses."
What is the Opposition's stance on the proposed bill?
The proposed bill, which will need to pass by the 1 January deadline for it to come into effect, has prompted a wider debate about the intersection of migration and housing with education policy.
Despite comments made by Opposition leader Peter Dutton last month, who labelled international students who the Coalition has strongly opposed the bill.
In a joint statement, the Opposition's education spokesperson, Sarah Henderson, home affairs spokesperson, James Paterson, and immigration spokesperson, Dan Tehan, said the bill was an "approach [that] does nothing to address the structural issues it created".
"The proposed cap in the education bill before parliament will not even touch the sides of this problem."
The Liberals called for the government to instead adopt long-term solutions that strengthen Australia's global standing while addressing domestic challenges.
Education Minister Jason Clare said the Coalition's move to block the bill will undermine Peter Dutton's credibility on migration issues. Source: AAP / Lukas Coch
"Never in my life did I expect to see Peter Dutton get into bed with the Greens on immigration. But that is what looks like happening," he said.
"Peter Dutton might pretend to be a tough guy on immigration, but the truth is he's a fraud."
Dutton has previously said he would collaborate with universities to set a cap on international student numbers in order to ease pressure on rental markets in major cities.
Education providers have warned that the mixed messaging from the government will deter international students from studying in Australia. Source: Getty / FatCamera
Impact on universities
The proposed bill has already created significant uncertainty, with the country's top universities calling out both sides for its treatment of international students.
Universities Australia CEO Luke Sheehy said: "Australia’s universities are again being used as a political football in the migration debate."
"It beggars belief that one of our country's biggest export industries is being treated this badly. We can't have a bright and vibrant higher education sector that delivers for all Australians without the revenue international education brings to our universities.
"This appears to be lost on both sides of politics as they continue to treat international students as cannon fodder in the political battle over migration and housing."